Foreign Assets and U.S. Tax Obligations

Tuesday, May 19, 2015

Do you have foreign assets or foreign earned income? If so, you may have a tax liability to the United States, regardless of whether or not you are a US citizen, a resident alien, maintain dual citizenship, or lived and worked overseas all or part of last year.

U. S. citizens and resident aliens are required to report income from ALL world-wide sources to the Internal Revenue Service including income from foreign trusts, banks and securities accounts; although, only part or perhaps none of the income is taxable.

Additionally, the Financial Crimes Enforcement Network (FINCEN) requires any taxpayer with signature authority or other authority over a foreign bank account(s) that total more than $10,000 (USD) ON ANY GIVEN DAY to file form 114 which reports these assets. The deadline to file this form is June 30th and the form must be filed electronically.

If you would like more information regarding the filing requirements concerning foreign assets, foreign earned income, or foreign income exclusion, please contact us and one of our CPAs will respond to you within 24 hours.